How to become a Forex trader

Making money from money is a very satisfying way of making a living but Forex trading shouldn’t be considered akin to gambling. This is a great job that needs skills and determination. You also need to learn the ropes before committing money to this project. We’ll tell you how to become a Forex trader so you can start making your cash pile grow.

wikimedia commons

Broker

You’ll need to find a great broker in order to become a great Forex trader. You want a broker who’s part of a big organisation so that there’s always someone on the end of the phone right when you need them to be. The larger the firm, the more resources at your disposal. Big companies also have great IT backup so they’re operating when smaller firms are rebooting their servers. Time is money so don’t underestimate how important this sort of thing is.

Software

Now that you’ve found a broker you can rely on, you should test out their software. Open a demonstration account so you can learn how the trading platform works. While you’re doing this, you’ll be able to practice your skills too as you won’t be trading with real money.

Research

Don’t trade impulsively. This is a profession not a pastime so make sure you can justify your trades by researching each. The FX market is a technically driven one so read up about technical analysis. Major newspapers with international news reports are also vital sources of important information for traders, and of course the web is full of useful data that will help you become a great Forex trader.

Trading systems

You should now consider whether you should buy into a system or signal package. These fall into three general categories: range, trend and fundamental. As fundamental systems are rarely used by individuals you should concentrate on trend and range systems. You won’t find one system that exploits currencies, but as a beginner you’ll find these systems helpful.